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07/06/2009, 12:10 parsnips Joined on 28/08/2008 Posts 434 Re: Tax Form 2047 - interest on savings - confused !  audio wrote: From this very useful website: http://www.annett-consultancy.com/article_filling_in_your_French_tax_form.html#UKinterest For declaring interest etc, they quote: ‘These are declared in total, jointly, for both spouses, and it is the net figure of interest actually received, not the gross pre-tax income figure that is declared. Add together all of the net (after the deduction of tax, the amount actually received) and interest for both spouses, from all sources, by country of origin.’ To my thoughts, this is an advantage. I have a small amount of cash in a UK savings account and any interest earned (not much these days) I declare as outlined above, then quite legally I think, the tax paid on this interest in the UK can be claimed back on UK Gov. form R43 if this sum is below your personal allowance. Hi,      It may seem presumptuous of me but the Annett Consultancy are WRONG. If you are french resident your interest is taxable ONLY in France. You are entitled to have it paid gross in the UK, or to reclaim any tax paid there,and should do so. See the current DTT art. 11 "interest" para (1)."interest arising in a contracting state (UK), and paid to a resident of the other contracting state (France), shall be taxable only in that other state(France) if that resident  is the beneficial owner of the interest. "    Report

07/06/2009, 12:52 audio Joined on 04/05/2008 Posts 48 Re: Tax Form 2047 - interest on savings - confused ! Thank you Parsnips but Barclays Bank for one, insists on charging tax for which the saver has to reclaim if an overseas resident. I have argued considerably with Barclays about this matter but they will not pay interest tax free.    Report

07/06/2009, 13:14 parsnips Joined on 28/08/2008 Posts 434 Re: Tax Form 2047 - interest on savings - confused !  audio wrote: Thank you Parsnips but Barclays Bank for one, insists on charging tax for which the saver has to reclaim if an overseas resident. I have argued considerably with Barclays about this matter but they will not pay interest tax free. Hi,     Most UK banks are the same, that's why you should contact HMRC to obtain the necessary form to claim the UK tax back. This you will have to do at the end of each UK tax year. The fact that your bank is wrongly deducting tax, (because they can't be bothered with the extra paperwork), does not entitle you to reduce your legal liability in France, you must declare the gross, and set about reclaiming the UK tax. (If you want to be absolutely legal.)    Report

07/06/2009, 13:20 dragonrouge Joined on 08/02/2008 Posts 587 Re: Tax Form 2047 - interest on savings - confused ! Dear Parsnips the obligations here are with the banks and the terms of HMG are onerous and costly. Our BS absolutely refuse to pay gross. So every May I reclaim the tax deducted then wait six months for the money back and then send it back to the BS It is madness The sums are not huge but it drives me mad.    Report

07/06/2009, 15:18 audio Joined on 04/05/2008 Posts 48 Re: Tax Form 2047 - interest on savings - confused ! Dear Parsnips,   Explications générales form 2047 states;   ’De la déclaration sont déterminés par rapport au revenu net de l’impôt étranger perçu’.   Is this not the same as what Annett Consultancy are saying which you say is wrong?      Report

07/06/2009, 16:38 parsnips Joined on 28/08/2008 Posts 434 Re: Tax Form 2047 - interest on savings - confused !  audio wrote: Dear Parsnips,   Explications générales form 2047 states;   ’De la déclaration sont déterminés par rapport au revenu net de l’impôt étranger perçu’.   Is this not the same as what Annett Consultancy are saying which you say is wrong?   Hi again,        The 2047 is for all foreign income (not just UK) and the way it is treated depends on the various double taxation treaties which France has with many different jurisdictions. Many of these provide for France to tax the interest after giving a tax credit for tax paid in the country of origin; this is why in section B page 2 "interest" columns 5,6, and 7, there is provision for deduction of a percentage "credit" calculated in accordance with a percentage set out in the table on page 3, which gives various % for different countries .         In the case of the UK /France treaty however, it is laid down that ONLY FRANCE is entitled to tax the interest which is exempt in the UK. That is why the "credits" table shows no %  and if you look at the indicated note "8" in the table, on page 2 note 8 , it says (my translation) "these dividends ,interests, and the like, are taxable EXCLUSIVELY in the country of residence of the beneficiary. In consequence they give no right to a tax credit.    Report

07/06/2009, 17:03 allanb Joined on 04/09/2006 Posts 918 Re: Tax Form 2047 - interest on savings - confused !  audio wrote: Explications générales form 2047 states ’De la déclaration sont déterminés par rapport au revenu net de l’impôt étranger perçu’.  Is this not the same as what Annett Consultancy are saying which you say is wrong? Unfortunately your quotation is incomplete; the whole sentence is Les pourcentages portés dans les colonnes du tableau situés page 3 de la déclaration sont déterminés par rapport au revenu net de  l’impôt étranger perçu.  It only refers to the method of calculating the tax credit (which doesn't apply to UK interest anyway). FWIW, I also think Annett Consultancy is wrong - unless they're being somehow quoted out of context.    Report

07/06/2009, 20:09 LesLauriers Joined on 23/08/2004 Posts 832 Re: Tax Form 2047 - interest on savings - confused !  allanb wrote:  audio wrote: Explications générales form 2047 states ’De la déclaration sont déterminés par rapport au revenu net de l’impôt étranger perçu’.  Is this not the same as what Annett Consultancy are saying which you say is wrong? Unfortunately your quotation is incomplete; the whole sentence is Les pourcentages portés dans les colonnes du tableau situés page 3 de la déclaration sont déterminés par rapport au revenu net de  l’impôt étranger perçu.  It only refers to the method of calculating the tax credit (which doesn't apply to UK interest anyway). FWIW, I also think Annett Consultancy is wrong - unless they're being somehow quoted out of context. If you were to credit Annett Consultancy with knowing what they are doing then perhaps they mean "declare the interest received after tax (net) then reclaim the tax and declare that when received" However, like yourself and a few others, I believe they are wrong, interest is not taxable in UK but is taxable in France and should be declared gross. The fact that the Banks / BS are not prepared to pay interest free of UK tax has no impact on what is due and where.    Report

10/06/2009, 18:08 parsnips Joined on 28/08/2008 Posts 434 Re: Tax Form 2047 - interest on savings - confused ! Hi allanb,      Re yr email, I replied yesterday but it wasn't delivered, I have now PMed you.    Report

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